More and more developers are gravitating towards Ethereum’s Blockchain; however, the rivals are not sitting back either!
Over the past year, developers have shown a great interest in the Ethereum Blockchain. They are using this platform to create unique digital tokens called NFTs (non-fungible tokens) and decentralized finance projects DeFi. The increase in such activities attracts more developers to Ethereum, and it is becoming a powerful network effect. Hence, it is safe to say that if this continues to happen, Ethereum will be the platform of choice for Web 3.0. Eventually, the series of decentralized applications could challenge Big Tech’s offerings.
According to Sandeep Nailwal, co-founder of a company operating on Ethereum, Polygon, “60-70% of the industry runs on Ethereum. It is very sticky.”
Taking a look at the price of ETH, there are a few possibilities of powering it. One is that it has entered a phase where the number of circulating tokens will grow very slowly compared to the past or shrink significantly. Financial speculators are predicting that these tokens will become more like Bitcoin. The supply of ETH has already reduced. It’s because some tokens that were formerly paid in fees for validation of transactions to miners are now destroyed.
Currently, ETH is the crypto equivalent of oil that will fuel the digital economy. Nevertheless, a large reduction in the supply of its tokens can change that. Resultantly, it will attract more investors towards a deflationary asset, said Ninos Mansor is Partner at Arrington XRP Capital.